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Fragmentation in China’s
Public Administration and
Its Impact on the
Development of Tourism
HU Wei
Distinguished Professor & Dean
School of International and Public Affairs
Shanghai Jiao Tong University
Marketization
Marketization as a great trend and
orientation of China’s development in Post-Mao
China, is currently both the context of China's
public administration and the basic dynamics of
its administrative development.
China GDP, 1978-2005
GDP ranking 2010 (million USD)
China—BOOMING Tourist Source
China's tourism has grown rapidly
because of China’s marketization and
economic development in the past 3 decades.
China's membership in WTO as well as
Beijing Olympic Games and World Expo
2010 have stimulated the country's booming
tourism market.
China—A BOOMING Tourist Source
Tourism has become the industry with the
greatest vitality in China’s economic
development.
According to some experts, China would be
the world’s No.1 tourism destination and the
fourth largest nation of tourists.
Marketization → Decentralization
Devolution
Deregulation
Downsizing
3Ds
Decentralization
China’s administrative reform has
experienced decentralization and
transformation of the administrative
function in the past decades.
Fragmented Across Different
Levels and Departments
Despite of the progress in China’s public
administration since the Reform, it has been
rather difficult for China’s government to
implement its policies and regulations because
public administration and policy are fragmented
across different levels and departments of the
government.
Fragmented Authoritarianism
A Dilemma:
Out of control at macro level
Over-control at micro level
Its Impact on China’s Tourism
Administration
The 1st Impact
A Dual System of Chinese tourism
administration has been formed in 1978
China National Tourism Administration
(CNTA) was set up at the beginning of the
reform.
Tourism Administration at local levels were also
created at the same time.
ECONOMIC REGIONS AND MAJOR TOURISM PROVINCES
Heilongjiang
Neimenggu
Jilin
Liaoning
Xinjiang
Beijing
Gansu
Ningxia
Hebei
Shanxi Shandong
Shaanxi
Qinghai
Jiangsu
Henan
Xizang
Anhui
Shanghai
Hubei
Zhejiang
Sichuan
Chongqing
Hunan Jiangxi
Fujian
Guizhou
CHINA
Central Economic Region
Eastern Economic Region
Western Economic Region
Province Major Tourism Province
Yunnan
Guangxi Guangxi
Hainan
Taiwan
The 2nd Impact:
from Monopoly to Decentralization in
tourism business operations
Before 1978: Three Magnates of Travel Services
• CITS, CTS, and CYTS
By 2009: 1460 international travel services
The market is highly fragmented with top 100 travel
agencies controlling 50% of the market.
The 3rd Impact
A Polycentric System of Chinese macro
tourism administration besides the China
National Tourism Administration (CNTA)
National Scenic Areas---Ministry of Construction
National Forest Park---Ministry of Forestry
National Nature Reserve---State Environmental
Protection Administration
National Geopark---Ministry of Land and Resources
National Cultural Relics Preservation Unit---Ministry of
Culture
Outcomes
Tourism administration and policy are
fragmented across different departments of
the government
Better Integration
Since current policies are fragmented across several
government agencies with different policy mandates,
better integration of policies and implementation efforts
is required.
For such a purpose, the administration system of
tourism has been changed at some local level. Tourism
Commissions have been established in Beijing, Guilin
and Hangzhou in order to coordinate the relevant
departments of tourism under leadership of a vice
mayor.
Better integration will depend on the macro
reform of China’s public administration system,
such as the “Big Departments Reformation”.
Another basic way is to introduce more market
forces into the bureaucracy.
---3Ds are still needed
Thank you!